Hi, the old trading mantra of “buy the rumour, sell the news” was brilliantly proven this week with the Bank of Englands interest rate news.
In the words of one of my favourite TV characters, Dr Greg House “Everybody lies”.
A month ago the governor of the Bank of England spoke about the need to raise rates soon.
Many analysts believed him and the Gbp was gaining strength this morning.
Then the news came out, no rise.
Then the best of it is Bailey said “MARKET PRICING FOR RATE HIKES WAS OVERDONE.”
He was the one who started it! Then the best comment ” rate decision ‘was a very close call’
The vote was seven to 2 against. Where else in the universe is a 7 to 2 vote close!
See the video and why you should never trade the news and especially tomorrows NFP as that nonsense is designed to trick you on steroids!